Tackling America’s Crippling National Debt

America’s staggering national debt burdens every Alaskan family and is the greatest single threat to our country’s recovery after the worst economic crisis since the Great Depression. Both political parties are guilty of deficit spending, but now it’s vital that officials from both parties work together to cut spending, improve efficiency and take other bold actions to reduce the debt, which currently totals more than $14 trillion.

As one of Alaska’s United States senators the past two years, I have worked across party lines to cut federal spending. As a member of the Senate Budget Committee, I continue to work on bipartisan, common-sense ways to get our nation’s fiscal house in order.

Grow Alaska’s Economy While Reducing the Deficit

Fortunately, Alaska’s economy has weathered the economic crisis better than most states. Still Alaska’s unemployment rate is unacceptably high and the burden of excessive government regulation prevents the private sector from creating new jobs for Alaskans.

As mayor of Anchorage, Senator Begich demonstrated an ability to make tough decisions and balance the budget. After inheriting a $33 million budget gap in 2003, he cut city staff, won wages freezes from public employee unions, collected unpaid fines, reformed Anchorage’s tax code and reorganized government for greater efficiency. Now, Senator Begich is working hard to reduce the federal deficit and debt.

Cut Spending, Improve Efficiency to Reduce the Debt

I have proposed and support numerous measures to cut the deficit, including:

• A five-year spending freeze on discretionary federal spending;
• Cutting farm subsidies;
• Cutting by half the congressional printing/binding budget;
• Selling federal properties the government no longer uses;
• Repealing the burdensome 1099 provision in the health care law would require businesses to file IRS forms for every vendor from which they buy at least $600 in goods from each year starting in 2012;
• Ending the Troubled Asset Relief Program; and
• Redirecting abandoned earmarks toward bringing down the deficit.

Decisions about what and where to cut federal are tough but necessary. Senator Begich supports most of the recommendations by the President’s National Commission on Fiscal Responsibility and Reform.

To identify commonsense ways of reducing our national deficit, Senator Begich has asked Alaskans to share their ideas about how to cut the deficit – Alaskans can share their ideas with Senator Begich here.

As Senator Begich works to curtail reckless spending, he recognizes we must protect vital programs for Alaskans and will continue to support crucial Alaska funding for the Denali Commission and projects that create jobs, and promote health and safety across the state. He not believe ceding authority over earmarks to the executive branch is an effective way to reduce the deficit. Senator Begich also believes we must protect Social Security and Medicare, and fully provide for our military and veterans.

Tax Reform Vital for Economic Growth

A significant but necessary step to improve fiscal responsibility is tax reform to simplify our inefficient and complex tax code. Senator Begich is a cosponsor of the Bipartisan Tax Fairness and Simplification Act, which would cut the federal deficit by an average of $61 billion a year while creating 2.3 million jobs. Closing some tax loopholes for corporations that send jobs overseas alone would save billions of dollars.

This legislation would:

• Create 2.3 million new jobs for Americans;
• Cut the federal deficit by an average $61 billion a year;
• Add $500 billion to America’s GDP by 2015;
• Allow most taxpayers to file a simple one-page 1040 form in less than an hour;
• Hold down taxes for all Americans by ending unfair tax breaks and loopholes;
• Reduces the number of individual tax brackets from six to three: 15 percent, 25 percent and 35 percent;
• Allow small businesses with annual receipts of up to $1 million permanently expense all equipment and inventory costs in a single year;
• Create a single flat corporate tax rate of 24 percent.